Answer:
The change should you expect in operating cash flows next year would be 19.60%
Explanation:
In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:
change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year
change should you expect in operating cash flows=2.8*0.07
change should you expect in operating cash flows=19.60%
The change should you expect in operating cash flows next year would be 19.60%
Answer:
Explanation:
Total asset turnover = Sales/total assets
3.2= 14000000/Total assets
Total assets = 4375000
E/A = 1-D/A = 1-0.45 = 0.55
Equity = E/A*assets = 0.55*4375000=2406250
Net income = (EBIT-interest)*(1-tax rate)
=(1344000-546000)*(1-0.25)=598500
ROE = Net income/total equity
ROE% = 598500/2406250=0.248
ROE% = 24.8
Answer: Option C
Explanation: As per the subject matter of behavioral economics, endowment effect refers top the phenomenon under which it is assumed that a rational individual will retain a commodity he or she already owns rather than acquiring the same commodity if he do not own it.
Hence from the above we can conclude that correct option is C as it states that one will not sell a painting even though at a price that the holder would pay to purchase it himself.
Answer:
Comparative advantage.
Explanation:
Comparative advantage is the ability to produce good and services at a lower opportunity cost compared to others , leading to lower selling price and competitive advantage over others .
Specialization is about concentrating on producing a few products in order to
build brands , expertise and gain maximum productivity leading to a reduction in selling price and a comparative advantage.
